Can a proprietorship firm levy the Tax.

This query is : Resolved

VIJAY (Querist)
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06 July 2009 Hi Experts,

Can a Proprietorship firm deduct the tax against an invoice from the vendor.?
For example,'ABC'is a proprietorship firm. ABC received an invoice from a vendor against "professional fee".
Now while making the payment to vendor against said invoice, whether the TDS amount can be deducted (sec.194J)or not by the Proprietor.?

Thanks,
Vijay

Aditya Maheshwari

Aditya Maheshwari (Expert)
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06 July 2009 TDS would be liable to be deducted if the proprietor is liable to audit u/s 44AB in the previous year.
Even if he wants to deduct voluntary there is no problem he can go ahead.

Laxmi Narayana Sahu

Laxmi Narayana Sahu (Expert)
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06 July 2009 The liability to Deduct arises if the Accounts are required to be Audited under section 44AB of the Income Tax Act,where there is no liablility to deduct the asseesee should not move to deduct it.Hoever voluntary deduction will induce compliance of TDS Provisios such as filling of return & issue of Certificate.

VIJAY

VIJAY (Querist)
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10 July 2009 Thanks you very much, Sir.!!

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